HR Block vs TaxAct becomes the confusion during the tax season, which is a time when everyone looks for the easiest, most cost-effective way to file their returns. With multiple tax software options available, two names that consistently stand out are HR Block and TaxAct.
Both offer a solid mix of affordability, tax optimization tools, and support options, but choosing between them depends on your specific needs.
HR Block vs TaxAct: Why Compare?
HR Block and TaxAct are among the top-rated tax software platforms that cater to a wide range of taxpayers.
Whether you’re filing a simple return or need assistance with business deductions, investments, or self-employment taxes, both options provide user-friendly tools to streamline the process.
- HR Block is widely recognized for its easy-to-navigate interface, in-person assistance, and strong audit support. If you’re looking for the option to consult a tax expert or prefer a more guided experience, HR Block offers more robust support.
- TaxAct is known for being one of the most budget-friendly tax software platforms while still providing a range of features. If you’re comfortable handling your taxes independently and want affordable pricing with essential tools, TaxAct is worth considering.
Both platforms offer federal and state filing, tax deduction assistance, and audit protection, but they differ in their approach, pricing, and level of support.
Who is This Guide For?
This guide is designed for taxpayers who want to compare H&R Block and TaxAct to determine which software best fits their filing needs. Whether you’re filing as a first-time taxpayer, freelancer, small business owner, or investor, this comparison will help you make the right decision.
🔹 Individual Filers – If you have a simple tax return with W-2 income and standard deductions, you’ll want a platform that makes filing quick and hassle-free.
🔹 Self-Employed Individuals & Freelancers – If you earn 1099 income, work as a gig worker, or run a small business, you’ll need software that includes Schedule C deductions, expense tracking, and freelancer-friendly tax tools.
🔹 Taxpayers with Investments or Rental Income – If you deal with capital gains, rental property earnings, or dividends, choosing a tax software that properly categorizes and optimizes these transactions is essential.
🔹 Anyone Looking for Affordable Tax Filing – If cost is a major factor, this guide will help determine which software provides the best balance of affordability and features.
What This Guide Covers
To help you make an informed choice, this guide will compare H&R Block and TaxAct in key areas, including:
🔹 Ease of Use – Which platform offers a smoother filing experience?
🔹 Pricing & Affordability – Which one provides better value for your budget?
🔹 Tax Deductions & Credit Maximization – How well do they help you reduce taxable income and maximize returns?
🔹 State Filing & Additional Costs – Are there any extra fees to consider?
🔹 Audit Support & Customer Assistance – Which software offers better protection and access to tax professionals?
By the end of this comparison, you’ll have a clear understanding of which tax software is best for your needs, allowing you to file with confidence and maximize your tax savings in 2025!
Overview of TaxAct for Small Businesses
A Brief History of TaxAct
Founded in 1998, TaxAct has built a reputation as an affordable and straightforward tax filing solution for individuals and small businesses. Designed to provide a no-frills, DIY approach, it offers an intuitive platform that simplifies the tax filing process without the high costs of premium tax software.
Over the years, TaxAct has continually updated its platform to keep up with evolving tax laws, ensuring small business owners have an accurate and efficient way to file their returns. With an emphasis on affordability and ease of use, TaxAct is a go-to choice for budget-conscious business owners.
Unique Benefits of TaxAct for Small Businesses
TaxAct is known for its cost-effective pricing and simplified tax preparation, making it an ideal solution for small businesses that prefer a DIY approach. It provides essential tax filing tools without unnecessary complexity, ensuring business owners can file accurately and efficiently.
Affordable Pricing Without Hidden Fees
TaxAct offers competitive pricing for self-employed individuals and small business owners, making it one of the most budget-friendly tax software options. Unlike some competitors, it provides straightforward pricing with no hidden fees, ensuring businesses only pay for what they need.
Guided Tax Filing Process
The software walks users through a step-by-step filing process, asking relevant questions to ensure all necessary tax information is captured. Even those with minimal tax knowledge can follow the guided approach and complete their returns with confidence.
Small Business Tax Deduction Assistance
TaxAct helps businesses identify deductions they qualify for, ensuring they maximize their tax savings. The software automatically scans for common business deductions, such as home office expenses, mileage, and business-related purchases, helping users keep more of their earnings.
Audit Protection and Support
While TaxAct doesn’t offer full audit representation, it provides access to IRS audit guidance and essential resources. The optional Audit Defense add-on connects users with professionals who can assist in case of an IRS audit, giving business owners added peace of mind.
Secure Cloud-Based Tax Filing
TaxAct allows users to securely file their returns online from any device, with built-in security features to protect sensitive business information. Cloud-based accessibility ensures that tax documents are available anytime, making it easy to review past returns or update tax information on the go.
Who Should Use TaxAct?
TaxAct is an excellent option for small business owners who prefer a straightforward and cost-effective way to file their taxes. It is best suited for business owners who want to handle their taxes independently without paying for premium features they may not need.
Self-Employed Individuals and Freelancers
TaxAct provides an affordable tax filing solution for freelancers, gig workers, and independent contractors. With tailored self-employed tax tools, it simplifies reporting 1099 income and claiming deductions for business expenses.
Small Business Owners Looking for Budget-Friendly Software
For sole proprietors, LLCs, and small business owners seeking an affordable alternative to high-end tax software, TaxAct offers a cost-effective solution. It provides essential tax filing features without extra costs for premium services.
DIY Filers with Basic Tax Knowledge
Business owners who are comfortable handling their own tax returns and prefer a self-service approach will benefit from TaxAct’s guided tax filing. The platform provides clear instructions and tools to simplify the process without unnecessary complexity.
Business Owners Who Need Secure, Cloud-Based Access
With TaxAct’s online platform, small business owners can file their taxes from anywhere, making it a great option for those who need flexibility. The cloud-based system ensures documents are securely stored and easily accessible when needed.
TaxAct is a practical choice for small businesses that value affordability and simplicity in tax preparation. While it lacks some of the premium features of competitors, it delivers everything a small business owner needs to file accurately and efficiently without breaking the bank.
Overview of HR Block for Small Business
A Brief History of HR Block
HR Block was founded in 1955 by brothers Henry Bloch and Richard Bloch. The company has earned a very positive reputation as one of the most trusted names in the tax-preparation domain. The mission is simple. The house wants to help both individuals and businesses to file their taxes accurately and in the easiest way possible.
Today, HR Block has developed its DIY tax software as well as in-person services, through which small business owners can file taxes with confidence. Well, you want to go it alone or want an expert to handle the job for you; it is possible, in short, whatever options you view comfortably managing your taxes, whether hands-on or with expert guidance, that possibility is there within HR Block.
Unique Benefits of HR Block for Small Businesses
Combining a micromanagement relationship that small business owners sometimes require and an easy-to-use program with expert-backed support, HR Block allows tax filing to run much smoother at the same time. It establishes a bridge between the fully automated software and total professional assistance, giving the business what it needs without a lot of entanglements.
Tax Pro Assistance
Business owners can file independently or connect with a tax professional for expert guidance, whether online or in person. Such flexibility allows small businesses to choose the level of support they need, making tax filing less stressful and more accurately aligned with their needs.
Business Expense and Deduction Tools
HR Block’s software streamlines the automatic tracking of business expenses and identification of deductions that maximize tax savings; these helpers make sure small business owners aren’t missing valuable deductions that can reduce their overall tax obligations.
Audit Support
Free audit assistance and a premium Worry-Free Audit Support option for professional IRS representation are what the company offers to small businesses. This new layer of protection gives small businesses peace of mind as they know they have expert backup if an audit arises.
In-Person and virtual filing options
Business owners can pick fully DIY, hybrid, or tax preparation that is full service with an assigned tax expert. This distribution of how much and what options can be molded according to the needs of the particular business, no matter how complex.
Flexible Plans for Multiple Filers
HR Block has customized pricing for sole proprietorships, partnerships, and LLCs, with all businesses only paying for what they really need. This is structured pricing for reliability and affordability in tax filing while ensuring access to the required features.
Who Should Use HR Block?
HR Block is an excellent choice for small business owners who want flexibility, expert guidance, and reliable tax solutions without overcomplicating the process. It is especially beneficial for those who need a mix of automation and human expertise.
Self-Employed Individuals and Freelancers
The software simplifies reporting 1099 income, tracking expenses, and claiming deductions, making it an excellent choice for freelancers and gig workers. With clear step-by-step guidance, self-employed professionals can file with confidence, even if they have no prior tax experience.
Small Business Owners with Employees
HR Block’s tools help businesses manage payroll taxes and stay compliant with tax laws, ensuring smooth operations. Its user-friendly interface makes it easy for business owners to stay on top of tax-related employer responsibilities without needing advanced accounting knowledge.
Those Who Prefer Expert Support
Business owners can access real-time assistance from tax professionals or visit an HR Block office for in-person help. This hybrid approach ensures that no matter how complex a tax situation gets, reliable support is always available.
Entrepreneurs with Complex Tax Situations
For businesses with multiple revenue streams, investments, or significant deductions, HR Block’s software and tax professionals provide comprehensive tax analysis. This is particularly helpful for business owners who want to maximize deductions without the risk of costly errors.
HR Block stands out for its mix of digital convenience and expert support, making it a great fit for small business owners that need accuracy, guidance, and flexibility in tax preparation. Whether you’re a freelancer, a growing business, or a seasoned entrepreneur, it offers the right tools to simplify tax season.
Feature Comparison for TaxAct vs HR Block
| Feature | TaxAct | HR Block |
|---|---|---|
| Ease of Use | Simple, no-frills tax filing with step-by-step guidance | User-friendly with guided steps and in-person support |
| Tax Forms Supported | Supports all standard tax forms, including self-employed & business | Covers all major tax forms with added guidance |
| Audit Support | Basic audit assistance included, full audit defense available as an add-on | Offers free audit support with an optional paid audit defense |
| Live Expert Help | Limited support; professional help available for an extra fee | Online and in-person tax professional assistance available |
| State Filing Fees | Additional cost per state | Additional cost per state |
| Pricing | More affordable, ideal for budget-conscious filers | Higher pricing but includes in-person and live expert support |
Pricing Comparison for TaxAct vs HR Block
| Plan | TaxAct | HR Block |
|---|---|---|
| Free Edition | $0 Federal | $0 Federal |
| Deluxe | $24.95 | $55 |
| Premier | $34.95 | $85 |
| Self-Employed | $64.95 | $115 |
| Live Expert Assistance | Starts at $89 (Xpert Assist) | Starts at $85 (Online Assist) |
Ease of Use & User Experience: TaxAct vs HR Block
When selecting tax software, ease of use is a key factor, particularly for small business owners and self-employed individuals who need a straightforward filing process. TaxAct and HR Block both offer user-friendly platforms, but their approach, navigation, and support levels differ.
TaxAct vs HR Block – Ease of Use
| Feature | TaxAct | HR Block |
|---|---|---|
| Beginner-Friendly | ✔ Straightforward DIY process | ✔ Guided step-by-step filing |
| Mobile App | ✘ Limited functionality | ✔ User-friendly, supports full filing |
| Deductions & Tax Savings | ✔ Identifies common deductions | ✔ Strong deduction optimization |
| In-Person Assistance | ✘ Online support only | ✔ Available at physical locations |
Beginner-Friendly Navigation
TaxAct
TaxAct offers a straightforward, DIY tax filing experience with an easy-to-follow step-by-step process. The interface is designed for self-sufficient users, making it an excellent choice for those who are comfortable filing without much guidance. However, it lacks the interactive interview-style approach that some competitors offer.
HR Block
HR Block provides a structured, guided filing process that helps users understand why specific tax information is needed. The software walks filers through each step, making it more approachable for those who prefer a bit more hand-holding in the tax preparation process.
Mobile-Friendliness & App Availability
TaxAct
TaxAct does have a mobile app, but its functionality is limited compared to HR Block. Users can file their returns, but some features—such as business expense tracking—are better handled on the desktop version.
HR Block
HR Block’s mobile app is more robust, allowing users to complete their taxes entirely on a mobile device. It supports features like document scanning for W-2s and 1099s, making data entry quicker and more efficient.
Navigating Deductions & Tax-Saving Opportunities
TaxAct
TaxAct helps users identify common deductions, particularly for self-employed individuals and small businesses. However, it lacks AI-driven deduction recommendations and automation tools found in some competitors.
HR Block
HR Block offers a strong deduction-finding tool that helps maximize savings. While it may not be as automated as AI-driven platforms, it provides access to human experts who can help users find the best deductions for their specific tax situation.
Which Is More User-Friendly?
- Choose TaxAct if you prefer an affordable, straightforward DIY tax filing experience without extra features you may not need.
- Choose HR Block if you want an easy-to-navigate platform with access to expert help, both online and in-person.
Both platforms simplify tax filing, but TaxAct is better suited for budget-conscious DIY filers, while HR Block is ideal for those looking for guidance and support.
Customer Support & Audit Assistance: TaxAct vs HR Block
When it comes to customer support and audit protection, TaxAct and HR Block cater to different needs. TaxAct focuses on a cost-effective, self-service model with online assistance, while HR Block provides in-depth support, including in-person assistance at physical locations.
Customer Support Options
| Support Type | TaxAct | HR Block |
|---|---|---|
| Live Chat Support | Available with Xpert Assist | Available |
| Phone Support | Available during business hours | Available during business hours |
| In-Person Support | Not available | Offered at physical locations |
| Tax Expert Access | Xpert Assist connects to CPAs & tax professionals | Online and in-office tax experts available |
| Community Forum | Online FAQs and knowledge base | Community help and online FAQs |
Key Differences in Customer Support
- TaxAct primarily provides online support through phone, chat, and a knowledge base. Live expert assistance is only available with Xpert Assist for an additional fee.
- HR Block offers a more robust support system, including in-person assistance at physical locations and online expert consultations through Online Assist.
- TaxAct is better for self-sufficient users who prefer a low-cost, DIY tax filing experience.
- HR Block is ideal for those who need expert guidance and prefer in-person help.
Audit Protection & Assistance
| Feature | TaxAct | HR Block |
|---|---|---|
| Basic Audit Guidance | Free with all plans | Free with all plans |
| Full Audit Defense | Available as an add-on (Audit Defense) | Included with some paid plans |
| Assistance from Tax Pros | Available with Xpert Assist | Available with in-person & online filing |
| In-Person IRS Audit Help | Not available | Yes, in select locations |
Key Differences in Audit Assistance
- TaxAct provides basic audit guidance for free but charges extra for full audit defense through its Audit Defense add-on.
- HR Block includes some level of audit assistance with higher-tier plans and allows users to get in-person help at local offices if audited by the IRS.
- HR Block is the better choice for audit protection, offering in-person IRS support and included audit assistance in some plans.
Which One is Better?
- Choose TaxAct if you prefer an affordable, fully online tax filing solution with optional expert assistance.
- Choose HR Block if you value in-person support, better audit protection, and physical office visits for expert assistance.
- If audit protection is a major concern, HR Block is the better choice since it offers in-person IRS support and includes audit assistance in some plans without an additional fee.
Who Should Choose TaxAct?
TaxAct is a great option for budget-conscious filers who want a straightforward and low-cost tax filing solution with essential customer support.
Best for:
- Self-employed individuals and business owners looking for affordable tax filing with tools for reporting 1099 income and business deductions.
- Users who prefer a DIY approach and want to file independently without paying for premium tax expert services.
- Cost-conscious filers who need a cheaper tax software alternative while still accessing key tax filing features.
- Online-only filers who are comfortable with phone and chat-based support rather than in-person assistance.
Why Choose TaxAct?
- Lower pricing compared to competitors, making it ideal for budget-conscious users.
- Xpert Assist available for an extra fee, allowing access to CPAs and tax professionals.
- Simple DIY tax filing experience with step-by-step navigation.
- Basic audit guidance included, with optional Audit Defense add-on for extra security.
TaxAct is best for users who prioritize affordability and are comfortable filing their taxes without in-person assistance.
Who Should Choose HR Block?
HR Block is a strong choice for those who prefer the flexibility of online tax filing with the option of in-person support. It offers a balance between DIY filing and expert guidance.
Best for:
- DIY filers who want the option of in-person help by starting their return online and visiting a local HR Block office if needed.
- Small business owners and self-employed individuals who need strong deduction assistance and in-person consultations.
- Budget-conscious filers looking for a more affordable alternative to TurboTax with similar features.
- Users who want a mix of online and expert support, as HR Block provides both virtual and in-person tax assistance.
Why Choose HR Block?
- In-person tax filing option at local offices for face-to-face assistance.
- More affordable pricing compared to TurboTax, especially for state returns.
- Easy-to-use interface with step-by-step guided instructions.
- Strong audit assistance included in some plans for added peace of mind.
HR Block is ideal for filers who want the flexibility of online tax preparation but also appreciate the security of expert help in-person if needed.
Final Verdict: TaxAct vs HR Block
| Feature | TaxAct | HR Block |
|---|---|---|
| Best for | DIY tax filers on a budget | Filers who want expert help & in-person support |
| Customer Support | Online chat, phone, & paid Xpert Assist | Online, phone, & in-person assistance |
| Audit Protection | Free basic guidance, paid full audit defense | Free basic guidance, in-person support included in some plans |
| In-Person Support | Not available | Yes, in local offices |
| Live Expert Help | Xpert Assist (paid add-on) | Included in Online Assist & in-person services |
Which One Should You Pick?
- Choose TaxAct if you want a cost-effective tax solution and don’t need in-person help.
- Choose HR Block if you prefer expert guidance and audit protection with in-person support.
HR Block is the better option for those who value support, guidance, and IRS audit protection, while TaxAct is best for users who want to file taxes affordably with minimal assistance.
TaxAct vs HR Block: Which is Better?
TaxAct and HR Block are both popular tax software options, but the best choice depends on your tax filing needs, budget, and the level of support you prefer. While both platforms simplify tax preparation, they cater to different types of users.
Key Differences
- TaxAct is an affordable, no-frills tax software best suited for those who prefer a do-it-yourself approach with basic support. It’s ideal for cost-conscious filers who want a straightforward, budget-friendly tax solution.
- HR Block offers a more comprehensive tax filing experience, in-person support, stronger audit protection, and a step-by-step guided process. It’s a better option for those who want expert guidance and face-to-face assistance.
Best Choice Based on Taxpayer Needs
| Taxpayer Type | Best Choice | Reason |
|---|---|---|
| Freelancers & Gig Workers | TaxAct | Affordable self-employed filing with basic deduction tools |
| Small Business Owners | HR Block | Better support for business deductions, expenses, and tax complexities |
| Basic Tax Filers (W-2 Employees) | TaxAct | Low-cost, easy-to-use DIY tax filing |
| Investors & Stock Traders | HR Block | Strong investment income reporting and capital gains support |
| Budget-Conscious Filers | TaxAct | More affordable pricing with essential tax tools |
| Filers Who Want In-Person Help | HR Block | Access to tax professionals at physical office locations |
Final Thought
Both platforms provide reliable tax filing solutions, but the best option depends on your budget and how much support you need.
- Choose TaxAct if you want an affordable, no-frills tax software with DIY features and essential tax support.
- Choose HR Block if you prefer expert guidance, in-person assistance, and stronger audit protection.
Conclusion
Deciding between TaxAct and HR Block depends on your filing preferences. If you’re looking for a cost-effective, DIY approach, TaxAct is a solid choice. However, if you value expert support, audit protection, and the option for in-person assistance, HR Block is the better option.
Before choosing, consider what matters most to you—cost, ease of use, expert help, and audit support. Each platform has strengths tailored to different tax filers, so selecting the right one ensures a stress-free tax season.
Frequently Asked Questions
Which is more affordable, TaxAct or HR Block?
TaxAct is generally more affordable, offering lower pricing across all tiers. It’s a good choice for budget-conscious filers who want a straightforward tax filing solution without paying for extra features. HR Block, while slightly more expensive, provides better customer support, including in-person assistance.
Does TaxAct or HR Block offer better audit protection?
HR Block provides stronger audit protection, including free basic audit support and optional in-person assistance at local offices. TaxAct includes basic audit guidance with all plans but charges extra for full audit defense through its Audit Defense add-on.
Can I file my taxes using a mobile app with TaxAct or HR Block?
Both TaxAct and HR Block offer mobile apps, but HR Block’s app is more feature-rich, allowing users to fully complete their tax return from their phone. TaxAct’s mobile app is functional but has limitations, especially for complex tax situations.
Which tax software is better for small business owners?
HR Block is the better option for small business owners because it offers stronger deduction assistance, expert tax support, and in-person consultations. TaxAct is a good budget-friendly alternative but lacks the advanced business tax features that some entrepreneurs may need.
Is HR Block or TaxAct better for first-time tax filers?
HR Block is better for first-time filers because it provides a step-by-step guided process with clear explanations. It also offers in-person support if needed. TaxAct is better suited for confident DIY filers who are comfortable navigating their tax return without much assistance.
